Coronavirus and its effects on construction projects?
COVID-19 virus is having and will continue to effect negatively the global economy of world . As most of the companies are implementing the safety precautions for this pandemic. But the virus has continued to spread and has affected almost every part of the world either by spreading or affected by lock downs everywhere.
Since fallout of the coronavirus is also affecting the construction industry. Construction companies may experience extreme cash stresses. Despite the uncertainty, experts predict that the pandemic will have ramifications for several aspects construction.
COVID-19 virus is having and will continue to effect negatively the global economy of world . As most of the companies are implementing the safety precautions for this pandemic. But the virus has continued to spread and has affected almost every part of the world either by spreading or affected by lock downs everywhere.
Since fallout of the coronavirus is also affecting the construction industry. Construction companies may experience extreme cash stresses. Despite the uncertainty, experts predict that the pandemic will have ramifications for several aspects construction.
However it has affected construction industry in various ways. These includes but not limited to the following.
- Project contracts
- Project financing
- Construction materials
- Health and safety of employees
- Global uncertainty
- Project contracts:
Due to corona outbreak, there will be delays in many construction projects. However it is unforeseen pandemic but still contractor may be responsible for the delay happens. Clients and contractors both need to review thoroughly contracts and legal issues as this is pandemic outbreak.
But still it will depends on various contractual terms like contractors schedules, delay in materials delievey either from client or contractor side, liquid damages and other substantial delays.
Experts recommends to check each item and its effect on the project delay.
2. Project Financing:
In construction industry everything comes down to time and money. This virus is very unpredictable. This global uncertainty is affecting the completion time in many ways. Client or lender may not be sure on time completion of project due to delays in materials delievey and uncertainty moving around.
3. Construction materials:
Lockdowns and quarantines has either slowed or shutdown manufacturing factories in every part of the worlds. Initially in the start of this pandemic, China closed their factories which were supplying materials to dozens of countries. Since then production of materials were stopped including construction materials.
Shutdowns of such factories and travel bans in many countries resulted delays in supplying of materials to construction sites. And can effects the completion time of different projects.
4. Health and safety of employees:
Companies all around the globe are concerned over the health and safety of employees. Contractors has to instruct the employees to comply with the safety precautions issued by WHO. Including the physical health, contractors would need to keep their employees mentally strong as the pandemic may increase anxiety among the workers. Contractors would need to transportation buses in order to maintain the social distancing.
As the physical presence of workers is must for construction industries. Teleworking or work from home is not possible in construction sites. Unavailability of technical workers or subcontractors due to lockdowns can affect completion of different activities on time.
Here are different ways that quarantines and personnel availability will impact construction jobs.
5. Global uncertainity:
Here are different ways that quarantines and personnel availability will impact construction jobs.
- Workers who are ill are unable to come to work
- Workers may fear to come for work even if they are healthy, due to concerns over large group of people
- Quarantines will make workers unable to come to work
- Quarantines and lockdowns will affect suppliers, lenders and other specialists to visit site
5. Global uncertainity:
This pandemic outbreak has scared the market such that nobody can expect the forecast for remaining 2020. Nobody can predict the outcomes for this virus if this is not over. When external circumstances creates pressure on one participant, those pressures are felt by everyone and companies at the bottom of payment chain are squeezed the hardest. Contractors may face a major cash threat with the coronavirus outbreak and threatening recession.
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